Business
Western Energy Services Corp. Releases Third Quarter 2012 Financial Results and Declares Quarterly Dividend
CALGARY, Oct. 31, 2012 /CNW/ - Western Energy Services Corp. ("Western" or the "Company") (...
About this update from Western Energy Services Corp.
[{"type":"text","content":"\n\n\n\n\n\nCALGARY, Oct. 31, 2012 /CNW/ - Western Energy Services Corp. (\"Western\"\n or the \"Company\") (TSX: WRG) is pleased to release its third quarter\n 2012 financial and operating results.  Additional information relating\n to the Company, including the Company's financial statements and\n management's discussion and analysis as at and for the three and nine\n months ended September 30, 2012 and 2011 will be available on SEDAR at www.sedar.com.  All amounts are denominated in Canadian dollars (CDN$) unless\n otherwise identified.\n\n\nHighlights:\n\n\nRevenue totalled $69.6 million in the third quarter of 2012, an $11.2\n million decrease (or 14%) over the same period in the prior year as a\n result of lower utilization in Canada. The slowdown in oilfield service\n activity was aided by wet weather and uncertain economic conditions\n which resulted in some producers reducing or delaying capital\n programs.  Lower revenue in the contract drilling segment was partially\n offset by $1.0 million in well servicing revenue;\n\n\nThird quarter EBITDA decreased by $6.5 million (or 21%) to $23.9 million\n in 2012 (34% of revenue) as compared to $30.4 million in 2011 (38% of\n revenue).  Similar to revenue, the decrease in EBITDA is mainly due to\n lower utilization in the Canadian contract drilling segment;\n\n\nNet income decreased by $16.6 million to $8.3 million in the third\n quarter of 2012 ($0.14 per basic common share) as compared to $24.9\n million in the same period in the prior year ($0.43 per basic common\n share).  The decrease is mainly due to the $10.7 million gain on the\n sale of StimSol Canada Inc. in the third quarter of the prior year. \n After normalizing for this transaction, net income decreased by $5.9\n million.  The normalized decrease is mainly due to the $6.5 million\n decrease in EBITDA and increased finance costs of $1.8 million, as a\n result of Western's January 2012 senior unsecured notes issuance,\n offset by lower income taxes of $2.9 million;\n\n\nIn Canada, during the third quarter, utilization per operating day in\n the contract drilling segment decreased by 26% as compared to the same\n period in the prior year.  Despite a decrease in activity, the\n Company's average utilization of 53% in the third quarter was 33%\n higher than the CAODC industry ave...